NE LB439

Creates a refundable income tax credit for Nebraska residents whose property taxes or rent exceed 5% of their federal adjusted gross income, effective for tax years beginning January 1, 2026

Credit equals 50% of the amount by which property taxes or rent paid on a principal residence exceeds the 5% threshold, capped at $4,000 for most taxpayers and $5,000 for those age 65 and older

Eligibility requires owning or renting a principal residence in Nebraska and residing there for at least six months of the taxable year

Property tax amounts used in the credit calculation are capped at taxes on a home valued at 200% of the average assessed value of single-family residential property in the taxpayer's county

Only one credit per residence may be claimed annually, and for homeowners, the credit cannot exceed the actual property taxes owed on the residence